Consumer Choice Optimization Quiz

What is the main goal of combining consumer budget constraints with indifference curves?

• To maximize consumer utility

• To increase consumer spending

• To eliminate tradeoffs

• To minimize consumer utility

How many hours per week can Garrett allocate to gym and online gaming combined?

• Six hours

• Five hours

• Four hours

• Seven hours

What is the tradeoff Garrett faces between gym hours and online gaming hours?

• One-for-one

• Two-for-one

• Three-for-one

• Four-for-one

What does an indifference curve represent in Garrett's scenario?

• The cost of gym membership

• The maximum hours available

• Combinations of goods with the same utility

• The total utility achieved

If Garrett sacrifices one hour of gym time, how many additional online hours does he need to maintain the same utility?

• Three hours

• Two hours

• One hour

• Four hours

What does the slope of minus two on Garrett's indifference curve indicate?

• The cost of gym membership

• The total utility achieved

• The rate of utility increase

• The marginal rate of substitution

When is Garrett's time allocation considered optimal?

• When he spends equal time on both activities

• When the slope of his budget constraint equals the slope of his indifference curve

• When he spends more time online

• When he spends more time at the gym

What happens if Garrett exchanges additional gym hours for fewer online hours?

• He gains more free time

• His utility level increases

• His utility level decreases

• His utility level remains the same

What are the two important characteristics for optimal budget allocation?

• Maximizing gym hours and minimizing online hours

• Having a higher budget constraint

• Spending all available time on one activity

• Being on the budget constraint and having equal marginal rates of substitution

Where can students go if they need more help with consumer choice optimization?

• Read a textbook

• Visit a local library

• Contact a financial advisor

• Visit Chegg for solutions and expert help